Europcar Mobility Group said in a press announcement on Tuesday it intends to begin talks with corporate debt creditors to restructure its debt. The talks look to ensure sufficient financial resources to enable Europcar to adapt to the new travel environment, in which Covid-19 “has profoundly reshaped mobility ecosystems.” Europcar's objective is to ensure a sustainable capital structure adapted to its level of revenue, with reduced corporate indebtedness and appropriate liquidity, the company said.
Europcar did not announce a timeline for the talks.
“What has been seen across the board in the travel and leisure sectors this summer demonstrates that the recovery of these industries to pre-Covid levels will be very slow,” the company stated. “Furthermore, as Covid-19 continues to be present throughout the world, the timing of the recovery remains highly uncertain.”
Eurazeo had been exploring selling its 29.9% stake and set September as a deadline for bids. Volkswagen had expressed interest in buying back Europcar, which it sold in 2006, though the deal did not materialize.
On Tuesday, Europcar’s shares sunk by as much as 33% on the news to their lowest level on record.